Supply Chain Newshttps://mexico-now.com/index.php/mn-news/supply-chain-news/61
Thu, 21 Mar 2019 20:19:54 +0000Joomla! - Open Source Content Managementen-gbFCA recalls 860,000 vehicles in the US over emissions issuehttps://mexico-now.com/index.php/component/content/article?id=5252:fca-recalls-860-000-vehicles-in-the-us-over-emissions-issue
https://mexico-now.com/index.php/component/content/article?id=5252:fca-recalls-860-000-vehicles-in-the-us-over-emissions-issueFiat Chrysler Automobiles (FCA) agreed to voluntarily recall 862,520 cars in the United States that no longer comply with federal emissions regulations, this according to the Environmental Protection Agency and the automaker.

FCA said it found a problem “during routine in-use emissions testing” and reported it to the agency earlier this winter. The automaker will replace the catalytic converters and update software on the powertrain control module.

While some or all of the levels of carbon monoxide, nitrogen oxide, and other hydrocarbons may have registered above the legal limit for on-road testing, FCA and these vehicles were in compliance at the time of sale before the new procedures were in place.

According to an FCA spokesperson no fines were issued and the recall is unrelated to the diesel-emissions settlement affecting 100,000 late-model Jeep and Ram trucks.

The EPA said the recall will take place in four stages depending on vehicle age, beginning with older models.

]]>FCA recalls 860,000 vehicles in the US over emissions issueFri, 15 Mar 2019 00:43:31 +0000Korean firm POSCO inks deal to build US$100-million heat & power plant in Coahuilahttps://mexico-now.com/index.php/component/content/article?id=5248:korean-multi-sector-firm-posco-to-build-us-100-million-heat-power-plant-in-coahuila
https://mexico-now.com/index.php/component/content/article?id=5248:korean-multi-sector-firm-posco-to-build-us-100-million-heat-power-plant-in-coahuilaPOSCO Engineering & Construction Co., an affiliate of South Korea's top steelmaker POSCO, has signed a US$100 million deal to build a combined heat and power plant in Mexico, Korean media reported.

The company signed an agreement with Ener AB to install a 100-megawatt power plant in the municipality of Ocampo, Coahuila, Northern Mexico, to supply stable power to the Magnelec chemical plant nearby. POSCO E&C aims to complete the construction in 24 months from its commencement date.

Magnelec, located in the community of Laguna del Rey, in the west region of the state, is the largest sodium sulphate plant in the country, a chemical used in the production of detergents, glass, paper and auxiliary in the dyeing of colors for the textile industry.

The plant also produces magnesium sulphate, whose main application is as a vegetable nutrient, and magnesium oxide, which is used to make refractory materials, although it is also used as a flux in metallurgy, as well as in the manufacture of ceramics, paints and glass.

Ener AB is a joint venture between U.S.-based power firm AES Corp. and Mexican firm Grupo Bal. AES currently operates power generation facilities in 18 countries across the world and has kept up business ties with POSCO E&C since 2006.

Grupo Bal is one of Mexico’s largest conglomerates which run mining, trading and insurance businesses. The company’s mining division, Grupo Peñoles, is the Magnelec plant owner.

With a total installed capacity of 117MW, the facility is expected to supply 269,068 MWh of green electricity to Mexico annually, enough power to feed the needs of 77,054 households.

According to Durango state officials, a US$200-million investment has been allocated to the facility while 600 temporary job positions will be created in the construction phase, when 357,733 solar panels will be installed

Risen Energy will operate both as PV module supplier and Engineering, Procurement and Construction contractor for the project. The company claims it will provide its most advanced modules equipped with high output rate, high power generation rate and high temperature resistance, assuring that the facility can effectively adapt to the area's complex and changeable climatic environment.

In recent years, Mexico's clean energy market has developed rapidly, and, with its broad prospects, the region has become an attractive investment target for both domestic and foreign investors.

Driven by favorable policies, Risen Energy has built an established presence in the market. Among the projects that Risen is involved in, an earlier 300 MW planned facility in Durango has already entered the first stage of construction.

Once fully completed, the facility will be the single-unit PV power station with the highest installed capacity in Latin America.

The ceremony was attended by Durango state governor Jose Rosas Aispuro Torres, Canatlan Mayor Dora Elena Gonzalez Tremillo and Risen Energy president Wang Hong, among diplomats and other business and government leaders.

“This is the first Chinese company in the solar energy sector that invests in our state. We hope it opens the door for more Chinese and Asian firms to consider doing business in Durango,” said Aispuro Torres.

“Our company is steadily advancing its expansion in Mexico. Through this collaboration with several other companies, Risen Energy will actively learn from its partners and constantly enhance its own strengths, in a move to bring high-quality, sustainable and renewable energy to Mexico, Latin America and the world, creating a healthy and sustainable new ecosystem,” commented Wang Hong.

The facility, located in the central state of Aguascalientes, is powered by over 200,000 Canadian Solar high-efficiency poly modules CS6U-P.

The plant will generate 145 gigawatt hours (GWh) of electricity annually, enough to power 20,690 households and offset 72,700 tons of carbon dioxide emission each year.

In addition to that, a total of 535 jobs were created during the PV plant construction and more than 15 new jobs are expected to be created for operations and maintenance during the upcoming 20 years the plant is in operation. Canadian Solar will provide operations and maintenance services to the plant.

“Achieving commercial operations for the Aguascalientes project is a significant milestone for Canadian Solar. This definitely strengthens our position as a leading solar project developer in Mexico and Latin America,” said in a statement Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar.

The facility was funded through a US$ 69.0 million non-recourse financing package provided by Banco Nacional de Comercio Exterior, S.N.C. (Bancomext) and Banco Sabadell. Bancomext is a Mexican Development Bank and Export Credit Agency, whereas Banco Sabadell is a commercial banking group headquartered in Spain.

“Mexico is a very important new market for us where we started solar project development business three years ago. We have a remaining pipeline of 368 MWp of solar projects in Mexico with awarded power purchase agreements (PPAs). Construction of these late-stage projects will soon start and commercial operations will be achieved in 2020,” the official added.

Canadian Solar competed for and won the Aguascalientes project in the first Long Term Auction in Mexico in 2016. According to the contract agreement, the electricity generated will be sold to Comisión Federal de Electricidad (CFE) under a 15-year PPA for energy and capacity, and 20-year for Clean Energy Certificates.

]]>Canadian Solar's first photovoltaic plant in Mexico is now fully operationalFri, 15 Feb 2019 04:08:28 +0000Wind blades manufacturer Nordex Group to set up production site in Matamoroshttps://mexico-now.com/index.php/component/content/article?id=5124:wind-blades-manufacturer-nordex-group-to-set-up-production-site-in-matamoros
https://mexico-now.com/index.php/component/content/article?id=5124:wind-blades-manufacturer-nordex-group-to-set-up-production-site-in-matamorosThe Nordex Group, a Germany-based manufacturer of wind turbines for the renewable energy sector, announced it will set up a manufacturing plant in the municipality of Matamoros, Tamaulipas.

Moving forward, rotor blades totaling more than 1GW capacity per year will be produced there for both the local and global markets.

Production will be equally extended to rotor blades for the large turbines of both the AW and the Delta4000 platforms, and is scheduled to start in spring 2019. The production hall is currently being equipped with modern production molds.

The company declined to reveal the amount of investment allocated in this project, but it said the facility will create around 900 direct and indirect job positions once fully operational.

“With the plant in Matamoros, we are responding to the sharp rise in global demand for our products. In addition to the existing rotor blade production facilities in different regions, we can now also manufacture our rotor blades in the vicinity of the North and Latin American growth markets. This increases significantly our competitiveness,” said in a statement José Luis Blanco, CEO of the Nordex Group.

It is worth noting that Nordex is the second wind blades manufacturer that arrives in Matamoros in recent years.

Last year, Arizona-based manufacturer TPI started operations at the same location where it builds wind blades for other producers such as Vesta and General Electric.

TPI and Nordex have signed multiyear supply agreements in the past to share manufacturing costs in Europe.

Rather than building its own manufacturing plant it is likely that Nordex will carry out operations at the TPI Matamoros facility, although neither company has confirmed this presumption.

]]>Wind blades manufacturer Nordex Group to set up production site in MatamorosThu, 14 Feb 2019 04:24:49 +0000Kansas City Southern posts record revenue on strong demand of oil products into Mexicohttps://mexico-now.com/index.php/component/content/article?id=5052:kansas-city-southern-posts-record-revenue-on-strong-demand-of-oil-products-into-mexico
https://mexico-now.com/index.php/component/content/article?id=5052:kansas-city-southern-posts-record-revenue-on-strong-demand-of-oil-products-into-mexicoKansas City Southern (KCS) reported record fourth quarter 2018 revenues of US$694 million, an increase of 5% from fourth quarter 2017 led by strength in crude oil and refined products fleet into Mexico, despite carload volumes remained flat compared to prior year.

However, net income fell in the fourth quarter due to a recorded a tax expense instead of a large benefit it reported during the same period a year ago.

The transportation holding company reported net income of US$161.1 million, down 71% from the comparable quarter a year ago. It said earnings were US$1.59 a share, down from US$5.33 a share.

For the full year of 2018, KCS achieved record revenues, of US$2.7 billion, up 5% from 2017, on 2% carload growth. Full year 2018 operating income was US$986 million. Excluding a gain on insurance recoveries, adjusted operating income was US$968 million, a 5% increase over prior year. The Company’s 2018 adjusted operating ratio was 64.3%, unchanged from 2017. Reported net income in 2018 was US$629 million, or $6.13 per diluted share.

In the fourth quarter, KCS reported 16% growth in cross-border carloads and revenue, most notably from refined products and cross border intermodal business.

The Chemical and petroleum business unit recorded revenue growth of 19%. This growth was primarily driven by strong southbound volumes of refined fuel products moving into Mexico. For the full year, the Mexican energy reform business contributed nearly US$100 million of revenue with carloads and revenue growing at 156% and 120% respectively.

Current fuel shortages in Mexico also represent a huge opportunity and company executives are engaged in talks with senior Cabinet-level officials to address this issue.

President and CEO Patrick J. Ottensmeyer said during a conference call that there’s a plan in the works to develop a more of a longer-term sustainable rail strategy for moving refined products. “We're literally in the middle of those conversations as we speak,” he said.

“AMLO made it clear that, how Mexico intends to compete in the marketplace and our perspective is that KC will serve Mexico's needs, whether that comes domestically or across the border,” added Michael W. Upchurch, Executive Vice President and Chief Financial Officer.

]]>Kansas City Southern posts record revenue on strong demand of oil products into MexicoMon, 28 Jan 2019 18:20:07 +0000CNH authorizes US$128 million investment to SMB for well drilling in NLhttps://mexico-now.com/index.php/component/content/article?id=5046:cnh-authorizes-us-128-million-investment-to-smb-for-well-drilling-in-nl
https://mexico-now.com/index.php/component/content/article?id=5046:cnh-authorizes-us-128-million-investment-to-smb-for-well-drilling-in-nlThe Comision Nacional de Hidrocarburos (CNH) authorized investments for US$128.49 million to the company Servicios Múltiples de Burgos (SMB) for the development of oil wells in a block of land located in Nuevo Leon.

The company plans to drill 17 holes for new wells, where it expects to find resources of natural gas and for the creation of 201,000 barrels of condensate, which would consist of liquid hydrocarbons with low levels of sulfur.

Servicios Múltiples de Burgos plans to start the well development activities in February of this year and is to continue with the work plan up until December of next year.

“The proposed activities contribute to the acceleration of the development of knowledge of the country's oil potential,” explained the CNH.

]]>CNH authorizes US$128 million investment to SMB for well drilling in NLSat, 26 Jan 2019 01:31:40 +0000French utility company Engie to supply clean energy for Gerdau Corsa plant in Tultitlánhttps://mexico-now.com/index.php/component/content/article?id=5041:french-utility-company-engie-to-supply-clean-energy-for-gerdau-corsa-plant-in-tultitlan
https://mexico-now.com/index.php/component/content/article?id=5041:french-utility-company-engie-to-supply-clean-energy-for-gerdau-corsa-plant-in-tultitlanGerdau Corsa, the Mexican subsidiary of Brazilian steelmaker Mexican Gerdau, has signed a 15-year contract with Engie, a French energy company, to acquire 100% of the power generated by a photovoltaic park to be located in Sonora, which will feed a plant located in Tultitlán, State of Mexico.

In a statement, the company said that with this acquisition, the factory where they make rebar will be added to a strategy to make their operation more competitive globally. The financial terms of the agreement were not disclosed.

Engie invested US$ 111 million for the construction of the solar park, which will have an installed capacity of 100 megawatts in an area of 266 hectares, where 400,000 panels will be installed. This facility will come into operation in the last quarter.

“Having signed this important contract for the supply of renewable energy is a very important success for the company, as a result of the effort and dedication of the teams from Mexico, Canada and the United States,” said Darren Macdonald, director of the energy division of Gerdau in North America.

]]>French utility company Engie to supply clean energy for Gerdau Corsa plant in TultitlánFri, 25 Jan 2019 15:01:29 +0000Iberdrola to invest US$2.5 billion in Mexicohttps://mexico-now.com/index.php/component/content/article?id=5030:iberdrola-to-invest-us-2-5-billion-in-mexico
https://mexico-now.com/index.php/component/content/article?id=5030:iberdrola-to-invest-us-2-5-billion-in-mexicoIberdrola’s president, Ignacio Sánchez Galán, recently announced his intent to deploy an investment of up to US$2.5 billion in Mexico between 2020 and 2022. This would continue an investment program that to date accumulates more than US$10 billion, which in turn would significantly increase the deployment of the electric power generation network that Mexico has.

The Spanish company seeks to increase the capacity of the electricity system with more than 2,000 megawatts (MW), since there seems to be certainty in the macroeconomic solvency of the country, among other positive factors.

“We plan to continue developing projects in the country,” said José Enrique Alba, director of the company in Mexico, during the 4th Infrastructure Projects Forum.

The project portfolio is large, Alba said. And, among the ones they are studying, there is one in the state of Nuevo León. The project would be additional to the two plants the company already has in the state, one of them entered commercial operation with 888 MW, which is already delivering power to the National Electric System.

The other twin plant in El Carmen has a capacity of 836 MW, which, according to Alba, is expected to come into operation by August 2019.

“It will be the first combined cycle in Mexico that uses Mitsubishi EJ gas turbine technology; they are the most efficient, with a yield of more than 60%. All the energy will be sold to industrial customers,” Alba said.

Iberdrola is present in 12 Mexican states, and is currently building five additional power plants, with 20 already operating. 40% of its sales go to private clients, large companies in Mexico.

“Mexico is a country that is growing its electric industry, unlike other countries, at three or four percent annual levels; that requires large investments and the investments require clarity and stability. Of course they can count on Iberdrola during this sexennium, as they could count during the previous ones, so that Mexico has the energy it needs in the cleanest, most profitable, and sustainable way possible,” Sánchez Galán said.

]]>Iberdrola to invest US$2.5 billion in MexicoWed, 23 Jan 2019 19:54:22 +0000Oil regulator Oks drilling plan by Monterrey-based company for Gulf of Mexicohttps://mexico-now.com/index.php/component/content/article?id=5024:oil-regulator-oks-us-33-million-drilling-program-by-monterrey-based-firm-in-gulf-of-mexico
https://mexico-now.com/index.php/component/content/article?id=5024:oil-regulator-oks-us-33-million-drilling-program-by-monterrey-based-firm-in-gulf-of-mexicoThe National Hydrocarbons Commission (CNH) approved an investment program of US$33.6 million for the exploration and evaluation of the presence of hydrocarbons in an area awarded to Jaguar Exploración y Producción in Veracruz, during Round 2 of the oil tenders emerged from the energy reform.

The approved program includes US$11.4 million for exploration activities and another US$22.2 million for the evaluation program. The company plans to conduct drilling and production tests in order to obtain an estimate of prospective resources in the area.

Jaguar, a subsidiary of Monterrey-based Grupo Topaz, plans to carry out explorations in an area located north of the awarded block, where it estimates the presence 28,000 to 30,000 million cubic feet of dry gas.